Trading Strategies and Market Analysis

These flashcards cover key concepts, strategies, and vocabulary related to trading and market analysis.

Micro Double Bottom

A technical chart pattern indicating a potential reversal where the price drops and then makes a bottom before rallying back up.

Buy Order

An instruction to purchase an asset at a specified price.

Moving Average (SMA)

A trend-following indicator that smooths out price data by creating a constantly updated average price.

Bear Market Days

Days when prices consistently decline, indicating a downtrend.

Bull Channel

A market characterized by higher highs and higher lows, indicating upward price movement.

Trading Range

A condition where the price oscillates within a defined upper and lower boundary.

Double Top

A bearish reversal pattern characterized by two peaks at approximately the same price level.

Breakout Test

A retest of a significant level that confirms a breakout from a trading range.

Earnings Report

A quarterly document that publicly traded companies release to disclose their profitability and financial health.

Fed Members' Speeches

Comments or talks given by members of the Federal Reserve that can impact market sentiment and volatility.

Scalping

A trading strategy that seeks to profit from minor price changes, often involving high trade volume.

Bull Flag

A continuation pattern that represents a brief pause in an uptrend, typically consisting of consolidation before a breakout upwards.

Measured Move Target

The price level predicted by measuring the distance from a previous move and projecting that distance from a breakout point.

Failed Bull Flag

A situation in which the price fails to break out upward after a bull flag pattern.

Average Price

The average cost at which a trader has bought or sold a security.

Stop Orders

Instructions used to buy or sell a security once the price reaches a specified level.

Wedge Bottom

A bullish reversal pattern that forms after a downtrend, characterized by converging trend lines.

Doji

A candlestick pattern that indicates indecision in the market, often occurring during periods of consolidation.

Market Gap

The area between a previous closing price and the next opening price, often a result of overnight news or events.

Resistance Level

A price level where selling pressure is strong enough to overcome buying pressure, preventing further price increases.

Support Level

A price level where buying pressure is sufficient to overcome selling pressure, preventing further price decreases.

Risk Management

The process of identifying, assessing, and controlling threats to an organization’s capital and earnings.

Catalyst

An event or announcement that triggers a significant price movement in a stock or market.